UPDATE 1-Citi chair says no timetable for repaying TARP

* Chairman says Citi at competitive disadvantage

* TARP payback depends on markets, economy

* Citi can withstand another economic dip (Updates quotes, background, stock price)

NEW YORK, June 15 (Reuters) - Citigroup (C.N: Quote, Profile, Research) fully hopes to pay back the $45 billion it borrowed from the U.S. Treasury's banking bailout program, but there is no timetable, the No. 3 U.S. bank's chairman said on Monday.

Richard Parsons, speaking at a forum sponsored by Time Warner, said the fact that Citi has been unable to repay its loans puts it at a disadvantage in terms of attracting and retaining key talent.

Last week, 10 major banks, including Goldman Sachs Group Inc (GS.N: Quote, Profile, Research), Morgan Stanley (MS.N: Quote, Profile, Research), and JPMorgan Chase & Co (JPM.N: Quote, Profile, Research), said they would be allowed to begin repaying loans from the Troubled Asset Relief Program, known as TARP.

"I do worry we could be competitively disadvantaged if we aren't able to find a way to quickly repay TARP," said Parsons, who added that he opposes caps on compensation.

Citigroup shares fell 3.2 percent to $3.36 early Monday afternoon on the New York Stock Exchange, underperforming the KBW Banks index , which was 2.6 percent lower.

Parson said Citi recently filed with the government a capital plan that outlines the bank's strategy going forward for repaying TARP.